The culinary world is undergoing a significant transformation as consumer preferences shift toward healthier options, particularly in the realm of baked goods. As a reflection of this trend, Mondelēz International, the parent company of Oreo cookies, has taken a substantial step by investing in a promising UK startup called Urban Legend. Founded in 2021 by Anthony Fletcher, an industry veteran formerly associated with Graze and innocent drinks, Urban Legend has garnered attention for its innovative approach to creating indulgent treats that are both enjoyable and better for health-conscious consumers. By utilizing a patented air frying technology, the startup has successfully reduced sugar, fat, and calories in its offerings by an impressive 30-80% compared to conventional doughnuts.
Fletcher’s mission with Urban Legend centers on a compelling question: how far can we reimagine traditionally unhealthy foods? By consciously reformulating traditional doughnuts, Urban Legend offers a delectable range of flavors such as peanut caramel protein, double chocolate, and lemon drizzle, all while maintaining the visual appeal and taste that consumers crave. What sets these doughnuts apart is not merely their taste but their ability to offer a guilt-free indulgence that meets the demand for healthier snacking.
From its inception, Urban Legend has moved from pop-up markets to establishing its products in major grocery chains around the UK, including Tesco. Each doughnut retails for £2.45, or approximately $3.21, which places them in a competitive price range for premium snacks. Urban Legend’s commitment to scalable growth has been evident as they’ve quickly established a strong presence within a market that has historically offered few better-for-you bakery alternatives.
Fletcher acknowledges the impressive trajectory of Urban Legend, particularly given that their products are available in only a limited number of stores—just a few hundred at present. The startup’s rapid growth is not solely a function of reaching a wider audience but also stems from engaging with retailers who recognize the massive potential within a category that has long been dominated by unhealthy options. Despite the overwhelming majority of doughnut products in the UK being high in unhealthy ingredients, Urban Legend’s vision is carving out a necessary niche.
The enthusiasm surrounding Urban Legend did not go unnoticed by Mondelēz, which has a long-standing intention to scout disruptive brands engaging in innovative practices. Their venture unit, SnackFutures, invested in Urban Legend with the intent of fostering a partnership that can drive both companies‘ growth. Richie Gray, the VP and Global Head of Mondelēz SnackFutures Ventures, highlighted their excitement during their first visit to Urban Legend’s facilities just over a year ago. It was clear that the backing of an established player like Mondelēz signals both recognition and potential for Urban Legend’s future.
Gray’s assessment of Urban Legend as a „natural adjacency“ to their existing product offerings reflects the strategic importance of this investment. The SnackFutures portfolio, though still in its development phase, already includes brands like Celleste Bio—a cocoa technology initiative—as well as Craize snack crackers, indicating Mondelēz’s commitment to diversifying its approach to snacking. The investment in Urban Legend opens doors to possibilities not traditionally explored in the fresh bakery sector, which has been relatively underserved in the UK.
Consumer Trends and Future Outlook
The time is ripe for a shift in consumer behavior. With increasing awareness regarding health and wellness, many consumers today are willing to seek alternatives that do not compromise on taste, particularly in the snacking category. Research indicates that the demand for healthier bakery goods is on the rise, and Urban Legend is strategically positioned to capitalize on this opportunity. Gray points out that the low-calorie bakery segment is flourishing in markets like the U.S., where similar health-conscious trends have already taken root.
Urban Legend’s growth is not merely an isolated trend, but part of a broader movement within the industry. As Fletcher aptly notes, there has been limited focus on healthier bakery goods in the UK market, with less than 1% of the category addressing health-oriented consumers. The investment from Mondelēz reflects a growing acknowledgment of this gap and the pitfalls associated with ignoring it. There is a palpable urgency for baked goods that cater to those seeking indulgence without the accompanying bulk of unhealthy ingredients.
The partnership between Mondelēz International and Urban Legend illustrates an exciting evolution in the realm of baking—one that balances indulgence with health consciousness. It sets the stage for the creation of a thriving market segment that prioritizes the dual objectives of taste and health, paving the way for innovation in the bakery sector and responding to the evolving desires of today’s consumers.
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